What I Learned Shopping for Auto Insurance

Your car insurance policy is one of the most important expenses you pay. It doesn’t seem that way often considering it’s an expense you pay but rarely use. However, car insurance is mandatory in all states, and you must meet the minimum insurance requirements provided by your lender if you lease or finance your vehicle. If you’re looking to save money on your car insurance rates, you’re certainly not alone. Americans want to find ways to lower their monthly expenses, and finding a more affordable but just as comprehensive insurance policy is one way to do just that.

You Can Compare Rates

One thing many people don’t realize is you can compare rates with different insurance agencies. You’re not required to stick with the agency you’ve worked with in the past. You can compare car insurance quotes online, you can call and speak to agents at different companies, and you can even walk into the offices and speak to agents about your insurance needs. They key to finding the best rates is knowing what kind of auto insurance coverage you need and how much you can afford.

Check Your Credit First

Before you go comparing rates for a new auto insurance policy, you must check your credit. Not all insurance agencies use your score, but many use it to find out what kind of risk you are in their eyes. If you have a low credit score and a poor credit history, you’re considered a riskier driver. The insurance agency will charge you a higher premium. If your score is high, you’re viewed as a responsible driver and offered lower rates.

You Can Have Discounts for Your Policy

There are many things you can do to find discounts for your auto policy, and you should ask. The worst thing your agent can do is tell you no, you can’t have the discounts. It’s always worth asking if you qualify for any of the following discounts.

• You don’t drive many miles
• You work in a low-risk career
• You are married
• You are a student
• You are a good driver
• You live in a good neighborhood with a low crime rate

Did you know you might qualify for insurance discounts if you work from home, live close to work, or you are retired? You spend less time on the road and in your car if this is the case, and you’re considered a less risky driver as a result. You might even qualify for discounts if you drive a car with safety features, a car with an alarm system, or one with better safety ratings.

Know What Additional Things You Need

You aren’t automatically covered if anything should happen to your car. Some policies make it seem that way when they are labeled “comprehensive,” but they aren’t. They are good policies, but they are policies in which you are going to find you might not be covered if something is stolen from your car or if your vehicle is damaged by something other than a natural disaster or accident. Know the different riders available, and purchase the ones that make the most sense to you when you’re searching for the most affordable policy.

Not all car insurance policies are created equal. You might need to shop around for policies before you realize that sometimes you’re paying less by simply paying a bit more if the policy is better. It’s always possible to save a bit by paying your policy upfront rather than monthly. It’s also possible to save money by signing up for automatic bank debit each month, and by utilizing other features your insurance agent might share with you. Call around, ask for quotes, and never settle for the first offer made to you. There might be a better option available.